9 September 2015

I’m exactly not sure but I presume almost all the guys who have seen ‘Wolf of Wall Street’ movie once had a dream to be like him. I mean lets be practical, who won’t love driving a Ferrari/Lamborghini, living in a multi million Villa located in most Porsche city of world and much more. Talking about general facts we can see every third college guy, a settled man or a retired individual keeping this wish beneath his pillow every night. But there is one thing which stops most of us and that’s the fear of getting drowned in loss which nowhere is false. We can see numerous examples around linked with same and are trying to overcome it.

So the question arises, is movie fake? Is stock market more about loss than profit? Answer from my perspective (basically based on calculations done by masters) is that it isn’t all about luck. Those getting loss are result of lack of knowledge. Here today I’ll be sharing with you five keys you need to have before you enter the share market. Let’s begin the boulevard to be a millionaire:

1- Learn about the game: This is the first thing, engulf all about the share market. Go through some basic books, attend seminars (or find some on youtube) and get yourself familiarized with the mutual fund, ETF and other basic stuffs. Remember ‘half knowledge is more dangerous than being a fool’. Most of the share market players get fail because they aren’t acknowledged about the entire play and hold ‘half knowledge’, which is basically based on heard stories or those they just saw and failed to learn from. Movies never narrate you the entire saga.

2- Keep it low: I understand you want to earn a million as soon as possible but begin with the low cost ETF’s. This won’t just lessen your risk but will increase the probability of getting higher profits. By investing in ETF’s you’ll have command over more than 7,000 individual positions and even if one goes bankrupt, you are left with remaining 6,999.

3- Play to participate: Every master needs a training time. However you have entire arena to test your proficiency and prove one in case you have. Never ever invest believing you’ve won, instead invest to be a part of it. Profits have larger chances of maximizing when rolled over for long run.

4- Manage your investment: With this I mean, before investing keep aside certain amount which you are ready to lose. I don’t mean invest it recklessly but this will give you enough confidence to invest and simultaneously will enable you to play for longer run without any expectation to have it. Remember the famous saying, ‘expect the unexpected’ and believe me share market is more of unexpected game. Let’s take an example, suppose you think Africa will face a boom in IT sector after 8 years (an example), invest your ‘ready to lose’ amount, who knows it does and turn your penny to pounds.

5- Stay alert: Last but definitely not the least, keep in mind, most of the successful investors don’t rely upon number crunching (basically based on annual reports) but they stay tuned with the press releases, public comments the management of any firm is making, their participation in social and other acts and yes the shareholders correspondence.

Before signing off I would just say, there is no key to success, doors are and will remain open. It’s you who has to find the way till there. Play a smarter game.